1. Which one of the following is NOT a certificate offered by PMI? a. PMP b. PMB
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Question
1. Which one of the following is NOT a certificate offered by PMI? a. PMP b. PMBoK c. PgMP d. PfMP e. CAPM
2. A person who holds PMI-RMP® certificate, has the ability to: a. Identify and assess project risks b. Mitigate threats and capitalize on opportunities c. a & b d. Do efficient Resource Management
3. In the executive summary of the Egan’s Report, which one of the following is NOT mentioned as the four key elements that the construction industry must consider when it comes to creating an integrated project process? a. Project implementation b. Production of components c. Partnering the supply chain d. Safe construction sites e. Product development
4. The historical data of RIBNA Construction Company (an imaginary company) shows that annually (on average) the company has won one out of any three projects for which they have bid. This year RIBNA has targeted 3 projects whose bid prices are $1M, $2M, and $3M respectively. Considering ONLY the cost of bid preparation: a. What is the financial risk associated with bidding for these three projects? b. How much must the bid price for each project be in order to, in case of winning, compensate the financial risk of losing the other two projects? c. Which project has the lowest chance to be selected? Why?
5. Which official document do sureties usually resemble a “lead parachute”? Why?
6. In what sections of a bid package are the following items normally specified? a. Unit Price work b. Tests and inspections c. Change of contract time d. Lump sum work e. Protection of Utilities f. Change of contract price g. Excavations and fill h. Duration of the project i. Layout of work and Surveys j. Clearing and grubbing
7. RIBNA Co. has built a 100-unit apartment complex that rents for $450 per unit a month. For late completion RIBNA was assessed $2000 per day. Would you, as a project manager in RIBNA Co., qualify the assessment as liquidated damages or as a penalty? If the contract had included a bonus of $500 per day for early completion, would you expect to gain any assessment from court action? Why?
Explanation / Answer
1. b. PMBoK
Reason: PMBoK stands for Project Management Body of Knowledge.
This documentation guide is overseen by project management institute (PMI) which offers CAPM and PMP certification
2. Both A&B
PMI-RMP® Project Management Institute - Risk Management Professional
This helps for specialized function needed for the project and it brings credit to the concerned organisation. This will enhance the ability to identify and access project risk and mitigate threats
3. d. Safe construction sites
4. a. What is the financial risk associated with bidding for these three projects?
The main financial risk is involved in depends on the other companies who have approached the similar project. The risk also depends on the stage at which they occur and source of origin. Since money is gained or lost before the startup of the project due to environmental conditions and economical down turn it is considered to be the most difficult situation to manage the loss within the bid price.
b. How much must the bid price for each project be in order to, in case of winning, compensate the financial risk of losing the other two projects?
The bid is mostly calculated by multilying the number of Units by Unit prices, and then all the extended numbers are added to get a total bid. Actually 80% of profit calculation is made by contractors to compensate the financial risk. The percentage can be reduced to 60 or 70% to win the project.
c. Which project has the lowest chance to be selected? Why?
This cannot be exactly predicted without having adequate knowledge about the value of the particular project.
5. Which official document do sureties usually resemble a “lead parachute”? Why?
It resembles a small administrative fee when the contractor is unable to pay his amount for the failure it is not the amount paid by contractor for insurance but instead it is the security for performance and payment.
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